Hyundai Elexio: The New EV Worth Leasing in 2026?
The Hyundai Elexio is taking on Tesla and BYD in Australia. Here's what PAYG employees need to know before putting it on a novated lease.
A new contender has entered the Australian EV market. The Hyundai Elexio is Hyundai's latest all-electric SUV, and early reviews suggest it's being positioned to compete directly with the likes of Tesla and BYD — brands that have dominated the novated lease order books for the past two years.
According to a hands-on review published by The Driven ([Source 1]), the Elexio holds its own against those rivals, though whether it does enough to genuinely stand out is still being debated. That's a fair question — and if you're an employee considering putting a new EV on a novated lease, it's exactly the right one to ask before signing anything.
What this means for novated lease customers
Here's why this matters beyond the usual car-launch noise: eligible EVs under the FBT exemption still represent one of the most significant salary packaging opportunities available to Australian PAYG employees. When a new vehicle like the Elexio hits the market, it expands your options — but the lease structure, residual values, and running costs all affect whether the deal actually makes sense for your situation.
BYD has been the go-to budget EV pick on novated leases. Tesla still commands strong residuals. Hyundai sits in an interesting middle ground — strong brand reputation, dealer network across Australia, and a history of solid resale values on its EVs like the Ioniq 5 and Ioniq 6. If the Elexio prices sensibly, it could be a genuine alternative worth modelling out.
The FBT exemption for eligible EVs — which currently covers battery electric vehicles under the luxury car tax threshold — means the pre-tax savings potential on a vehicle like the Elexio can be meaningful, though your actual outcome depends on your income, employer arrangement, and how the vehicle is packaged. There's no universal number that applies to everyone, which is why we'd rather show you a personalised figure than throw a marketing number at you.
Common questions
Is the Hyundai Elexio eligible for the EV FBT exemption?
Eligibility depends on the vehicle's final drive-away price relative to the luxury car tax threshold and the date it is first held and used. Once Australian pricing is confirmed, we can assess eligibility. Check back here or contact millarX directly for an up-to-date answer.
How does the Hyundai Elexio compare to BYD and Tesla on a novated lease?
All three can potentially sit within the FBT-exempt EV category, but the right choice depends on purchase price, projected residual value, and your personal driving needs. The Driven's review ([Source 1]) offers a useful starting point on how they compare as vehicles — the financial comparison is a separate conversation.
Can I novated lease a brand-new model before it's widely available?
Yes, in many cases you can place an order and structure the novated lease before delivery. The lease typically commences when the vehicle is delivered, not when you order. millarX can help manage the ordering process with your employer.
What happens to my novated lease if the FBT exemption changes?
Your existing lease terms are generally locked in at the time the lease is structured. Policy changes could affect new leases entered after any legislative amendment, but not necessarily existing agreements. This is one reason getting the structure right from the start matters.
Is Hyundai's dealer network a practical advantage for a novated lease?
It can be. A wider dealer network means more options for servicing, which is typically a running cost included in your novated lease package. Fewer headaches finding an authorised service centre is a real-world benefit, not just a marketing point.